PEG Ratio Calculator

Calculate PEG Ratio



Formula

The formula to calculate the PEG Ratio is:

\[ \text{PEG} = \frac{\text{P:E}}{\text{EPSG}} \]

Where:

What is the PEG Ratio?

The PEG ratio is a financial term that describes the ratio of the price-earnings ratio and the rate of growth of the earnings per share. The lower the ratio, the higher the earnings per share growth rate, indicating potentially better investment opportunities.

Example Calculation

Let's consider an example:

Using the formula to calculate the PEG Ratio:

\[ \text{PEG} = \frac{20}{10} = 2 \]

This means that the PEG ratio for this scenario is 2.